CBDT has decided to retrospectively extend the due date for filing Form No. 26QE to 30 May 2023 for cases where tax was deducted under section 194S between 1st July 2022 and 28th February 2023. The fees and interest levied for the period up to 30th May 2023 will be waived.
In a recent update, the Central Board of Direct Taxes (CBDT) has issued Circular No. 4/2024 dated 7th March 2024, extending the due date for filing Form 26QE. This extension applies to specified persons who deducted taxes from 1st July 2022 to 28th February 2023 under section 194S but were unable to file the form on time. The new due date for filing Form 26QE is now 30th May 2023.
Section 194S of the Income-tax Act, 1961, mandates that any person paying a resident person for the transfer of a virtual digital asset (VDA) must deduct 1% of the sum as income tax. According to sub-rule (4D) of Rule 31A, a ‘specified person’ must also electronically report such deductions in Form No. 26QE within 30 days from the end of the relevant month of deduction.
The CBDT noted that certain specified persons who deducted tax under section 194S between 1st July 2022 and 31st January 2023 could not file Form No. 26QE on time due to unavailability of the form. This led to the imposition of fees under section 234E and interest under section 201(1A) (ii) of the Act. Additionally, those who deducted tax between 1st February 2023 and 28th February 2023 had insufficient time to file Form No. 26QE and pay the corresponding TDS.
To address these issues, and in exercise of the powers under section 119(2)(a) of the Act, the CBDT has decided to retrospectively extend the due date for filing Form No. 26QE. The extended due date is now 30th May 2023 for cases where tax was deducted under section 194S between 1st July 2022 and 28th February 2023. The fees and interest levied for the period up to 30th May 2023 will be waived.
It is important to note that this extension is a one-time exception granted in light of the circumstances described above. Specified persons falling under this category are urged to take advantage of this extended deadline for filing Form 26QE without incurring additional fees or interest.
For more information and updates, please refer to the CBDT Circular No. 4/2024 dated 7th March 2024.
Download the CBDT Circular 4/2024
To Access the CBDT Notification 27/2024 Dated 5 March 2024 CLICK HERE
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